India lost Rs 12 lakh cr due to BJP's stand on GST, new bill draconian: Cong


New Delhi, Mar 29 (PTI): India lost a whopping Rs 12 lakh crore due to years of delay in implementation of the GST due to the stiff opposition by the BJP when the UPA government was in power, the Opposition said today.

Initiating a discussion on the four GST bills in the Lok Sabha, Congress leader Veerappa Moily said what the NDA government has brought about in the name of a "revolutionary tax reform is not a game changer but only a baby step".

Criticising various provisions in the proposed GST regime, Moily said it will be a "technological nightmare" and the anti-profiteering provisions in it are "far too draconian."

"Seven to eight years have passed after the erstwhile UPA government wanted to bring the GST bill. Some parties then felt it should be halted due to reasons best known to them,"he said.

The former Law Minister said due to the delay caused in the roll out of GST, the country lost around Rs 1.5 lakh crore annually and put the total loss at Rs 12 lakh crore. Asking who will compensate for this "huge loss", Moily said the country was deprived of massive financial benefits due to the "damaging political gambles".

Moily also slammed the Narendra Modi government for "high as well as too many taxes under the proposed GST system which he said does not reflect the original spirit behind the new tax regime."

"The one nation, one tax concept is only a myth. There are too many rates, cesses... What you brought today cannot be called a game changer but only a baby step," said Moily. Referring to the "complexities" in the inter-state transactions proposed under under the GST, he called some of the provisions as "retrogade".

The Congress leader also took strong exception to leaving the real estate sector out of the ambit of the GST. "The real estate sector generates lot of black money. It is very unfortunate that the sector was not brought under the ambit of GST," said Moily.

Earlier, Finance Minister Arun Jaitley introduced four bills in the Lok Sabha to give effect to the Goods and Services Tax (GST). Jaitley said the legislations will have to be passed by Parliament and one by each of the state assemblies to turn India into one market with a single tax rate.

The bills are the Central Goods and Services Tax Bill, 2017, the Integrated Goods and Services Tax Bill, 2017, the Goods and Services Tax (Compensation to States) Bill, 2017 and the Union Territory Goods and Services Tax Bill, 2017.

Moily said there will be a turf war between the tax administrations of central and state governments after the implementation of the GST. The senior Congress leader said the GST will enhance only administrative complexity in the tax system and there will be "complete anarchy" in taxation.

"Intention may be good but this will land the country in complete tax distortion," he said.

Moily said there was no clarity how the tax benefits will be availed by the common people.

He said the GST legislation was an example of how the government is pursuing a "chalta hai" (casual) attitude as there was not enough provision to protect the common people.

Participating in the debate, BJP member Udit Raj said the GST would bring about uniformity in the tax system and be immensely beneficial to the 1.2 billion people of the country.

Raj, a former revenue officer, said the GST Bill has been brought to end the different tax slabs prevalent in different states besides abolishing the cascading effects of the current tax structure.

Under the GST, there will be same tax structure across the country, all anomalies will come to an end and extend the tax base, he claimed. The BJP MP dismissed the suggestion that with the implementation of GST, the powers of the state legislatures to enact tax laws will be completely abrogated, saying the legislation was prepared only with the consent of all state governments.

He said the Centre will not dictate the GST Council but will act as buffer between the central and state governments. Raj said GST implementation will automatically encourage digitisation, bring in transparency and lower the prices and the hoarding of essential commodities, besides curbing blackmoney. "The GST is a game changer.. It will lead to a corruption-free India," he said.

He also tried to counter Moily's argument that the delay in implementation of GST led to the loss of Rs 12 lakh crore and saying that the earlier Opposition was responsible for delaying implementation of the legislation.

AIADMK member Venkatesh Babu termed the GST as the biggest tax reform initiative post independence but said there were many challenges in its proper implementation. He said Tamil Nadu, being one of the manufacturing states, had initially opposed the GST Bill but it was happy that some of the concerns of the state were addressed.

"There will be huge revenue loss to manufacturing states like Tamil Nadu. Some of our concerns were addressed while some are yet to be addressed," he said. Babu said through the GST Council, the central government will get 'veto power' and sought proper representation and powers to all states in it.

He also said that there will be an increase in the prices of some goods like fertiliser, which is now sold at a tax slab of 17 per cent (12 per cent excise duty and 5 per cent VAT), but the tax in fertiliser will go upto 25 per cent post GST implementation.

The AIADMK MP, however said, "the Tamil Nadu government is fully committed for successful implementation of GST". TMC member Kalyan Banerjee said the West Bengal government led by Mamata Banerjee has in-principle supported the "path-breaking" GST legislation but expressed concern over the government's hurry in its implementation.

Banerjee said it was West Bengal which always fought for cooperative federalism and fiscal autonomy and the rights of common people and small traders. He said the GST will bring a single tax structure for the common people and small traders and it was West Bengal which ensured that no state government suffers financially due to the implementation of GST.

The purpose of GST is to end multiplicity of taxes and its cascading effects and all benefits should be passed on to the common people, he said. Banerjee also suggested that the government should look into the GST models of other nations so that the legislation is implemented properly. Otherwise, the initiative may fail.

  

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Comment on this article

  • The Guru, Mangalore

    Wed, Mar 29 2017

    Congress people should first understand that their own state governments didn't agree with the proposed GST bill during UPA 2, this clearly states that there was lack of leadership in UPA-2

    In NDA all the suggestions given by the states (Ruled by congress , communist, BJD, TMC etc) where incorporated and thus all the states where on boarded and GST bill got tabled in Parliament for discussion

    Congress should learn how to take all the party into confidence.. Congress should also say about what they did from 2004 - 2009 on GST which was first propped by vajpayee

    DisAgree [11] Agree [5] Reply Report Abuse

  • ravi, mangalore

    Wed, Mar 29 2017

    Our FM should stop lying majority items tax rates will go up, It shall even trouble common man since price of essential commodities and only benefited by traders & business man to calculate & filling Return

    DisAgree [3] Agree [17] Reply Report Abuse

  • Swamy, Mangalore

    Wed, Mar 29 2017

    India became poor by 12 lakhs crores from poor tax payers money, whereas BJP gained everything by loot and came to power by people's hard earned money.

    DisAgree [2] Agree Reply Report Abuse

  • Rizwan, Bolar

    Wed, Mar 29 2017

    Where are we heading ?
    Banks/governments can waive off loans of Individuals which is just about hundreds of crore's , whereas it is hard for them to waive off the loans of the ones because of whom we are filling our stomach to stay alive (Farmers). We live, they die ? isn't it something to think about ??
    We have enough money to spend on defense (war planes, missiles etc) but not enough money to feed our soldiers.
    I wish such problems were solved. I don't care who does it, just get it done.
    I am optimistic.

    DisAgree [1] Agree Reply Report Abuse

  • Rizwan, Bolar

    Wed, Mar 29 2017

    WOW! Now bjp is saying GST will lead to corruption free India, so why were they opposing it when UPA was proposing for its implementation, back then they did not want a corruption free India ?? Some congress states too opposed it, so did Narendra Modi the CM of Gujarat at that time.
    Here are some more:
    Back then Bjp termed demonetization as anti poor, now congress did.
    Bjp opposed Aadhar, Now they know its importance.
    Opposed FDI , they were even going to fight till the last breath!
    Opposed when Computers were brought to India by Rajiv Gandhi.
    Opposed MGNREGA ETC ETC...
    I don't know where have they lost the list of those which had names of people having black money stashed abroad!

    DisAgree [2] Agree Reply Report Abuse

  • R, Mangalore

    Wed, Mar 29 2017

    ..Ho ic..then why didnt tell this during UP election, you could have easily won election..truth is, during your rule even your allies didnt beleived in you..so many bill (like Insurance bill) was not passed due to oppose by your own allies..after LS/RS, GST should be passed in every state Assembly also..if you have guts stop it in Karnataka Assembly..MOILY should calculate the future loss due to YETTINAHOLE in DK..it may run into billions..

    DisAgree [19] Agree [14] Reply Report Abuse

  • Langoolacharya., Belman/Wash DC.

    Wed, Mar 29 2017

    Vidhwaan Dr M Veerappa Moily's projects are always in Lakh's of Crores like Gas Scam 1.76 lakh crore, Coal Scam 3 lakh crore etc...he is not interested in less than lakh crore project....only exception is perhaps his joint project with Saddu ( Y Hole project) which cost only 13,000 crore....

    Mody is useless fellow,,,other wise this guy would have been with Chikkamma long time back....along with his mentors...

    ...JH...

    DisAgree [4] Agree [11] Reply Report Abuse

  • sri, Karkala

    Wed, Mar 29 2017

    In other words people saved 12 lacs crores of money. People benefited by delay isn't it.

    If chor party had implemented gst, then chor party got richer by that amount.

    DisAgree [23] Agree [13] Reply Report Abuse

  • Swamy, Mangalore

    Wed, Mar 29 2017

    Now BJP wants to make that same with interests and arrears doubly, right?!?!?!.

    DisAgree [4] Agree [13] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Wed, Mar 29 2017

    We need educated people ...

    DisAgree [8] Agree [38] Reply Report Abuse

  • HENRY MISQUITH, Bahrain

    Wed, Mar 29 2017

    smart city idea became super flop.

    DisAgree [3] Agree [12] Reply Report Abuse

  • Mahathma, mangalore

    Thu, Mar 30 2017

    Educated but puppets! loots!

    DisAgree Agree [2] Reply Report Abuse

  • Devkumar, Mangana Oor/New Delhi

    Wed, Mar 29 2017

    Please protest in ram leela ground along with anna hazare keju if need to win in 2019..!!
    Why all of sudden jump from LED to GST. Any particular reason behind it.

    DisAgree [25] Agree [18] Reply Report Abuse

  • Francis, Shirva

    Wed, Mar 29 2017

    Please arrange Ram Leela maidan or any maidan I will also join with you.

    DisAgree [3] Agree [13] Reply Report Abuse


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Title: India lost Rs 12 lakh cr due to BJP's stand on GST, new bill draconian: Cong



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